Irish oil and gas exploration firm Circle Oil has agreed a deal to farm into Exxoil’s Beni Khaled production licence in Tunisia.
The deal will see the Middle-East and Africa focused company take a 30% interest in the licence, in exchange for funding a 50 square km seismic programme and one well.
The cost of the work is expected to be around $5million, with the deal allowing Circle to up their stake to 50% by funding two new wells at a cost of $2million each.
“We are pleased to announce this farm-in with a proven discovery and additional potential upside,” said Circle chief executive Chris Green.
“This farm-in is the start of furthering the company’s development for the near to mid-term and represents an opportunity to monetise a low risk opportunity in the near-term.”
The licence, on the Cap Bon peninsula, contains the undeveloped Bir Drassen gas discovery, with early surveys suggesting potential for an oil rim. It also currently produces 80-100 boed from a well on the Beni Khaled field, with an estimated 0.25-0.5 MMbo remaining to be produced.